Understanding Malta Investor Taxation
Malta's taxation framework for foreign investors is primarily based on the concepts of residence and domicile. For the majority of international investors and expats, the most relevant status is being "resident but not domiciled" (often referred to as Non-Dom status). This distinction determines the scope of an individual's tax liability within the jurisdiction.
The Maltese tax year runs from January 1st to December 31st. Compliance is managed by the Commissioner for Tax and Customs. For the 2025 and 2026 assessment years, the system remains focused on attracting foreign capital through stable, predictable tax treatments for non-domiciled individuals.
The Remittance Basis of Taxation
Foreign nationals who are resident in Malta but do not intend to settle there permanently (not domiciled) are subject to tax on a "remittance basis." This means tax is only levied on certain types of income rather than worldwide wealth. The categories include:
- Income arising in Malta: Any income generated within the territory of Malta is taxable at standard progressive rates.
- Income arising outside Malta: Foreign income is only taxable if it is remitted (received in) a Maltese bank account.
- Capital gains: Foreign capital gains are generally not taxable in Malta, even if the proceeds are remitted to a local bank account. Capital gains arising within Malta, however, are subject to local tax rules.
Investors should note that as of 2026, a minimum tax of 5,000 EUR ($5,265 USD, Jan 2026) applies to non-domiciled individuals who are long-term residents and earn at least 35,000 EUR ($36,855 USD, Jan 2026) in income outside of Malta, regardless of whether that income is remitted.
Tax Rates and Residency Programs
While standard progressive tax rates reach a ceiling of 35%, Malta offers several specialized programs for foreign investors that provide simplified or reduced tax structures. These programs typically require a minimum investment in real estate and a commitment to pay a minimum annual tax.
Global Residence Programme (GRP)
The GRP is designed for non-EU/EEA/Swiss nationals. Participants benefit from a flat tax rate of 15% on any foreign source income that is remitted to Malta. To maintain this status, the following financial obligations apply:
- Minimum Annual Tax: 15,000 EUR ($15,800 USD, Jan 2026) per family unit.
- Property Requirement: Ownership or rental of property meeting specific value thresholds depending on the location in Malta or Gozo.
The Residence Programme (TRP)
Similar to the GRP but intended for EU/EEA/Swiss nationals, the TRP also offers a 15% flat tax on remitted foreign income. The minimum tax remains 15,000 EUR ($15,800 USD, Jan 2026) annually.
Corporate Tax and Dividends
For investors holding shares in Maltese companies, the "Full Imputation System" is a critical component. While the statutory corporate tax rate is 35%, the system is designed to prevent double taxation of corporate profits. When dividends are distributed to shareholders, they may be entitled to a tax refund of the tax paid by the company.
Depending on the nature of the income (trading vs. passive), the effective tax rate for a shareholder after the refund can be reduced to between 0% and 10%. This mechanism remains one of the most competitive features of the Maltese fiscal system for international business owners.
Property Investment Taxes
When purchasing or selling real estate as an investment, specific transfer taxes apply:
- Stamp Duty: Usually 5% of the purchase price, paid by the buyer.
- Final Withholding Tax (FWT): When selling a property, a final tax of 8% is typically charged on the transfer value. This may be reduced to 5% if the property is not the seller's primary residence and is sold within five years of purchase.
Investors are encouraged to consult the Identità portal for updates on residency requirements that may impact these tax obligations.